The following is a guest post by Rob Bennett, who writes at many venues. We’re grateful that Balance Junkie is one of them. This instalment of Rob’s monthly column is sure to stir some debate, so I’d love to hear everyone’s thoughts on his thesis here. Enjoy! My boys (Timothy, age 12, and Robert, age… Continue Reading
Tag Archives: financial crisis
Too Much Principal and Not Enough Principle
Wisdom is knowing what to do next; virtue is doing it. ~David Star Jordan It’s funny how rather complex issues can sometimes become a little more clear by accident. One of the spelling riddles I sometimes come across when I’m writing is the difference between principal and principle. Unlike other words like favourite and favorite,… Continue Reading
On the Move
Continuity gives us roots; change gives us branches, letting us stretch and grow and reach new heights. ~Pauline R. Kezer My computer will be packed and we will probably be en route for stage one of the move by the time you read this. It’s unfortunate that this geographical move is coinciding with more historical… Continue Reading
History Only Rhymes
Poetry is nearer to vital truth than history. ~Plato In our recent discussions about the Couch Potato style of investing, I mentioned that this strategy relies on historical market returns. I pointed out that including a component that reflects valuations might improve the strategy. This is basically the Valuation Informed Indexing approach about which Rob… Continue Reading
What Happens Monday?
It was widely rumoured around trading desks on Friday that S&P would downgrade the U.S. credit rating, stripping its coveted AAA status. Many dismissed the rumour. After the markets closed, it happened. Now what? I have no idea what will happen when markets open tomorrow morning. It seems like there’s a pretty good chance of… Continue Reading
How the Leadership Void Feeds the Financial Crisis
I am more afraid of an army of one hundred sheep led by a lion than an army of one hundred lions led by a sheep. ~Charles Maurice, Prince de Talleyrand-Périgord When the financial crisis erupted in 2008, many questioned the leaders and regulators in place at the time. How could the global financial system… Continue Reading
20 Cents from June 2011
It’s been a busy couple of weeks as my son had a significant surgery on his leg last week. Caring for him afterwards has been a round-the-clock job. I hope to be able to jump back into writing a little more in the coming weeks, although we have our big move looming as well. I’ll… Continue Reading
Book Review: The Weekend That Changed Wall Street
This is not just a symbolic black mark. The markets rely on investor confidence, and when that is shaken the results are recorded in tangible declines on balance sheets. ~ Maria Bartiromo A couple of weeks ago a representative of the public relations firm handling CNBC anchor Maria Bartiromo’s new book sent me an email… Continue Reading